Investors are able to invest any amount of their otherwise taxable gains into a Qualified Opportunity Fund. While there is no minimum that must be invested, the maximum amount that can qualify for the tax incentives will be equal to the investors otherwise taxable gains. For example, an investor with $1,000,000 in eligible gains will be able to invest up to $1,000,000 into a Qualified Opportunity Fund, but the investor can invest any amount between $0-$1,000,000 into the Qualified Opportunity Fund and qualify for the tax incentives. The investor will simply owe capital gains tax on amounts that are not invested into the Qualified Opportunity Fund. Additionally, investors are able to invest ordinary income into a Qualified Opportunity Fund, but any amounts invested as ordinary income will not qualify for the tax incentives and may create a mixed funds investment if the investor also invests eligible gains into the fund. For example, an investor with $1,000,000 in eligible gain can invest $5,000,000 into a Qualified Opportunity Fund, but only 20% of their investment will qualify for the tax incentives.
